A furniture firm is considering having wooden panels for its desks made overseas and assembling the desks in the UK. The cost of transporting the panels for one desk has changed:
| Period | Transport cost per desk |
|---|---|
| Earlier | £18.00 |
| Current | £3.20 |
Explain how the change in transport cost could affect the firm's decision about where to make the panels.
49 exam-style questions on OCR GCSE Economics 4.4 Globalisation, covering 4.4.1 What is globalisation, 4.4.2 Measuring development, 4.4.3 Globalisation in developed countries, and 4.4.4 Globalisation in less developed countries. Each one has a worked solution and a mark scheme showing where the marks go.